UK GAAP - Provisions and Contingencies

Course outline:

Section 21 – Provisions and Contingencies outlines the accounting treatment and disclosure requirements for provisions, contingent assets and contingent liabilities.

The standard sets out how to identify a provision, how they differ from a contingent liability, and when a contingent asset can be recognised.

After completing this module, you will be able to:

• identify when a provision or contingent liability has arisen, and the difference between the two.
• measure and recognise a provision, including applying specific guidance for restructuring provisions and onerous contracts.
• determine when a contingent asset has arisen.
• accurately present and disclose provisions, contingent liabilities and contingent assets within the financial statements.

CPD Hours: 2

This module is available as part of the UK GAAP Library.